Some Chips Investors Shouldn't Cash In
Programmable chipmakers make good long-term tech holdings-ùespecially after their solid quarter.
One niche in the semiconductor sector worth watching is the programmable-logic industry. Earnings for the big players were very good in the quarter just ended. More important, though, the futures of a number of companies that manufacture these chips continue to show abundant promise.
First Things First: Earnings
Xilinx (XLNX) is currently the trailblazer in programmable logic devices (PLDs). The company's most recent product family is seeing extremely strong demand in the communications industry. What's more, the company's sales and earnings are growing like gangbusters, as demonstrated by fiscal fourth-quarter results, reported Thursday evening. Xilinx reported earnings per share of $0.22 before investment gains, which was a penny higher than expectations. Overall growth was 16% over the December quarter and more than 65% over the same quarter last year.
Jeremy Lopez does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.